How does SEZ concept help investors in India? Enumerate the features of the Special Economic Zones (Amendment) Bill, 2019.
SEZ are set up under Special Economic Zones Act, 2005.These are as duty free enclaves to be treated as foreign territory. SEZ are allowed for manufacturing, trading and service activities. The SEZ model was inspired by Chinaï¿½s SEZs.
Benefits for investors:
- It promises single window and speedy approvals
- The approval committee is empowered and meets frequently and regularly
- Single window clearance for Central and State level approvals
- 100% Income Tax exemption on export income for SEZ units
- Duty free import
- Exemption from Central Sales Tax.
- Exemption from Service Tax.
- Exemption from minimum alternate tax
ï¿½This is important for investors, since they donï¿½t want to get caught in retrospective or unpredictable changes to taxes. SEZ unburden Indian manufacturers and gives them a competitive edge. These are the islands of excellence and efficiency, free from burdensome inspector raj or arbitrary taxes.
Features of the Special Economic Zones (Amendment) Bill, 2019: It allows trusts to set up units in special economic zones.ï¿½A trust or any entity notified by the central government will be eligible to be considered for grant of permission to set up a unit in SEZs. To set up a unit in these zones, an applicant would have to approach the Board of Approval, which is headed by theï¿½commerce secretary.
Published: June 27, 2019 | Modified:December 1, 2019